“The type of conversations, a lot deeper, a lot more thoughtful,” observes Eugene Ng, Head of Business Development for APAC at Gemini, describing the evolution he’s witnessed in institutional derivatives discussions. With over 10 years trading derivatives across Barclays, Deutsche Bank, and Citibank before building institutional crypto relationships across Asia, Ng possesses a rare perspective spanning both traditional and digital derivatives markets. His conclusion might surprise traditional finance veterans: cryptocurrency derivatives have not only matched traditional markets but fundamentally surpassed them in volume, innovation, and institutional appeal.
The numbers tell a story that even Ng’s extensive derivatives experience couldn’t have predicted. Crypto derivatives now account for 70-75% of total cryptocurrency trading volume, with daily turnover exceeding $100 billion and monthly volumes surpassing $3 trillion. To put this in perspective, the top 10 centralized crypto exchanges handled $58.5 trillion in perpetual futures volume in 2024—double the previous year’s $28 trillion. These aren’t retail-driven numbers; they represent sophisticated institutional trading that has migrated from traditional to digital markets with unprecedented speed.
“When I first spoke with institutions six months ago, the response was very lukewarm. Fast forward today, they’re actually sending us a lot of inquiries. It’s all in-bound. So that’s really a 180-degrees change,” Ng recalls, describing institutional transformation that coincides with explosive derivatives growth.
From Traditional Constraints to 24/7 Innovation
Ng’s derivatives trading background provides crucial insight into why institutional traders have embraced crypto markets so enthusiastically. Traditional derivatives markets, despite their sophistication, operate within constraints that crypto markets eliminate entirely. Trading hours, settlement delays, counterparty complexities, and regulatory limitations that define traditional derivatives simply don’t exist in digital asset markets.
“I’m confident that a lot of the CEOs at C-level suite management are asking what’s a digital asset strategy,” Ng notes, reflecting how derivatives trading has evolved from tactical execution to strategic positioning. The 24/7 nature of crypto derivatives enables strategies that traditional markets cannot support, while programmable smart contracts create risk management capabilities that exceed traditional infrastructure.
The institutional migration that Ng witnesses reflects practical advantages that derivatives traders immediately recognize. CME Group, the traditional exchange favored by institutions, reported 300%+ year-over-year growth in crypto futures volumes, averaging $10 billion daily in Q4 2024. However, even these impressive regulated volumes pale compared to the $40 billion daily volume that leading crypto exchanges handle for institutional clients.
Ng’s regional expertise across Australia, Hong Kong, and India provides insight into how different institutional cultures approach this transition. Asian institutions, with their comfort with electronic trading and alternative strategies, have proven particularly receptive to crypto derivatives innovation. The efficiency gains—instant settlement, global access, competitive pricing—align perfectly with institutional demands for operational excellence.
The Perpetual Innovation Revolution
The derivatives instrument that exemplifies crypto’s innovation advantage is the perpetual swap—a contract type that traditional markets cannot replicate. Unlike traditional futures with fixed expiration dates, perpetuals trade continuously with funding mechanisms that maintain price stability without requiring physical settlement. This innovation demonstrates how crypto markets have improved upon traditional derivatives design rather than merely copying it.
“It’s really increasing the Sharpe ratio of that entire portfolio. And with the innovation that we’re seeing in crypto space today, you don’t just buy bitcoin and hold it, there are so many other use cases,” Eugene Ng observes, highlighting how derivatives enable sophisticated strategies that extend far beyond simple spot trading.
Ng’s traditional finance experience helps him recognize how perpetual swaps solve operational challenges that plague traditional derivatives. No expiration management, no rollover risks, no physical delivery concerns—perpetuals provide pure price exposure with minimal operational complexity. For institutional traders managing large positions across multiple strategies, these operational improvements translate directly to enhanced performance and reduced costs.
The innovation extends beyond basic instruments to encompass new product categories that traditional markets struggle to offer. Hashrate derivatives enable mining companies to hedge operational risks, while volatility products provide direct exposure to market uncertainty. These specialized instruments reflect market maturation that occurred faster in crypto than in traditional finance, despite decades of difference in development time.
Institutional Infrastructure and Risk Management
The institutional comfort level that Ng describes reflects dramatic improvements in crypto derivatives infrastructure that address traditional finance requirements. “A lot of these financial institutions feel very much comfortable with Gemini, because of our regulations and the fact that we play by the rules,” he notes, highlighting how regulatory compliance has become table stakes for institutional participation.
Modern crypto derivatives exchanges offer institutional-grade services that match or exceed traditional market infrastructure. Portfolio margining, cross-asset collateral management, advanced order types, and risk controls provide familiar operational frameworks while enabling strategies that traditional markets cannot support. The largest platforms maintain insurance funds worth hundreds of millions of dollars, providing institutional confidence in market stability.
Ng’s approach to balancing risk and reward proves invaluable for institutional conversations because it provides translation between traditional risk management concepts and crypto market realities. Institutions comfortable with VaR models, correlation analysis, and portfolio construction can apply familiar frameworks to crypto derivatives while capturing benefits of enhanced liquidity, competitive pricing, and operational efficiency.
The risk management evolution that Ng witnesses extends beyond individual position management to encompass comprehensive portfolio strategies. Crypto derivatives enable institutions to hedge spot holdings, generate yield through covered strategies, and express complex views on volatility, correlation, and relative value—all within integrated operational frameworks that traditional markets require multiple providers to deliver.
Regional Adoption Patterns and Competitive Dynamics
Ng’s APAC experience provides unique insight into how different institutional markets approach crypto derivatives adoption. The region’s leadership in crypto innovation reflects cultural comfort with technological advancement and regulatory environments that support innovation while maintaining appropriate oversight.
Asian institutional derivatives adoption follows patterns that Ng recognizes from traditional markets, with early adopters capturing competitive advantages before mainstream adoption drives margin compression and operational standardization. The institutions that develop crypto derivatives capabilities first gain access to strategies and opportunities that late adopters cannot replicate.
The competitive dynamics that Ng observes reflect broader institutional recognition that crypto derivatives represent permanent market evolution rather than temporary opportunity. “And I think that’s going to continue for the rest of the year,” he notes about increasing institutional interest, suggesting sustained rather than cyclical adoption patterns.
His institutional relationship building reveals how crypto derivatives serve as gateway for broader digital asset adoption. Institutions that begin with derivatives for hedging or yield enhancement often expand into comprehensive crypto strategies that encompass spot trading, staking, and alternative investments. The operational infrastructure developed for derivatives enables broader crypto market participation with minimal additional complexity.
The Future of Institutional Derivatives Trading
For crypto derivatives expert Eugene Ng, crypto derivatives success represents validation of digital markets’ ability to improve upon traditional finance infrastructure rather than merely replacing it. His derivatives trading background enables him to recognize how crypto innovations address longstanding traditional market limitations while maintaining institutional-grade operational standards.
The institutional transformation he witnesses—from lukewarm reception to strategic urgency—reflects recognition that crypto derivatives provide competitive advantages that traditional markets cannot match. Enhanced liquidity, operational efficiency, and strategic flexibility create value propositions that sophisticated institutional traders cannot ignore.
“Fast forward today, they’re actually sending us a lot of inquiries. It’s all in-bound,” Ng concludes, describing transformation that positions crypto derivatives as institutional necessity rather than alternative investment. The $100+ billion daily volumes and 70%+ market share that crypto derivatives command demonstrate how digital markets have surpassed traditional finance at its own game.
As institutional adoption continues accelerating, digital assets thought leader Eugene Ng’s perspective suggests that crypto derivatives will increasingly set standards for efficiency, innovation, and operational excellence that traditional markets will struggle to match. The derivatives revolution he witnesses represents permanent shift toward digital market infrastructure that combines traditional finance sophistication with crypto innovation advantages.
